City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: MAY 19, 2026 FROM: FINANCE DEPARTMENT WARDS: ALL
SUBJECT: RESOLUTION DECLARING INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR FISCAL YEAR 2026/27 IN THE STREET LIGHTING ASSESSMENT DISTRICT NO. 1; APPROVING PRELIMINARY ENGINEER’S REPORT; AND SETTING A PUBLIC HEARING ON PROPOSED ASSESSMENT FOR JULY 14, 2026, AT 3:00 P.M.
ISSUE:
Adopt a resolution declaring the City’s intention to levy and collect assessments for Fiscal Year (FY) 2026/27 in the Street Lighting Assessment District No. 1, approving the Preliminary Engineer’s Report, and setting a Public Hearing for final approval of the levy of special assessments within the District for July 14, 2026, at 3:00 p.m.
RECOMMENDATIONS:
That the City Council:
Adopt a resolution declaring the City’s intention to levy and collect assessments for FY 2026/27 within Street Lighting District No. 1, approving the Preliminary Engineer’s Report; and Set a Public Hearing for final approval of the levy of special assessments within the District for July 14, 2026, at 3:00 p.m.
BACKGROUND:
On February 24th, 2025, the City Council adopted Resolution No. 24355, ordering the preparation of the attached Preliminary Annual Engineer’s Report for the City of Riverside Street Lighting District No. 1 (District). The attached report outlines the estimated cost of maintaining the landscaping and administration of the District for FY 2026/27 as well as the method of apportioning those costs to the property owners within the District. The City assesses all parcels within the District annually, regardless of development status.
The Street Lighting Assessment District No. 1 was formed in July 1988 under the provisions of the Landscaping and Lighting Act of 1972. Passed by the voters in June 1997, Measure EE approved the continuation of the assessments at the same rates as originally established. The Engineer’s Report apportions a portion of the annual cost of maintaining and operating City Street Lights to the parcels within the various lighting zones (including residential, rural, and nonresidential zones) through annual assessments.
The Street Lighting Assessment District uses a unit of benefit (UOB) formula to determine streetlight assessments for individual properties. The first UOB is the first 199 feet of street frontage. An additional UOB is added for each additional 100 feet of street frontage. Residential properties on corner parcels are assessed based on street frontage along one side. Nonresidential properties on corner parcels are assessed based on all street frontages.
DISCUSSION:
The following table outlines the proposed FY 2026/27 Street Lighting Assessment District No. 1 assessments per UOB.
Source: Attachment 2 (SLAD Preliminary Engineer’s Report) In Rural zones, the District caps each parcel at 3 UOBs. For FY 2026/27, this results in a General Fund subsidy of approximately $13,415 as illustrated in the table above.
This figure is calculated as follows:
X Zone 2: (553 UOBs) x ($23.76) = $13,139.28
+ C Zone 6: (113 UOBS) x ($2.44) = $275.72
Total = $13,415
The original assessment did not include CPI adjustments, resulting in current rates covering only approximately 63% of operating costs. The remaining non-rural zone shortfall – approximately $2,072,175.76 for FY 2026/27 – will be subsidized by the General Fund, for a total General Fund impact of $2,085,590.76. Any increase to account for higher operating and maintenance costs would require majority approval from property owners and renters under Proposition 218.
The following table outlines the Engineer’s FY 2026/27 Street Lighting Assessment District No. 1 cost estimate and projected assessment.
To pay for costs associated with providing services in newly developed areas of the City, including increased street lighting, the City Council approved a services component with the formation of two new Community Facilities Districts (CFD). City Staff will continue to recommend the inclusion of services components in future new developments to ensure full cost recovery related to new development costs. The streetlights maintained within such a CFD will be excluded from Street Lighting District No. 1, and property owners will pay the cost of their street light maintenance through a Special Tax, which is not capped at the same rate as originally established in the District. The first such CFD formed with a streetlight maintenance component is Community Facilities District No. 2021-3 (Bridle Ridge).
Street Lighting Assessment District No. 1 procedures require the adoption of a Resolution approving the 2026/2027 Preliminary Engineer's Report and the proposed assessments. Due to the size of the proposed assessment roll referred to in the Engineer's Report, it is listed under a separate cover and is on file with the City Clerk. The Resolution also sets the required public hearing for the final approval of the levy of special assessments within the District for July 14th, 2026, at 3:00 p.m.
FISCAL IMPACT:
The total fiscal impact of this action is approximately $5,698,899. The FY 2026/27 Street Lighting Maintenance District assessment levy will collect approximately $3,613,308, which will cover approximately 63% of the estimated streetlight maintenance and operations costs. The General Fund subsidy for FY 2026/27 is estimated to be approximately $2,085,591.
The FY 2026/27 proposed budget was developed prior to the receipt of the Engineers report and currently includes a General Fund subsidy of $1,670,040, leaving a potential remaining gap of $415,551. Staff will monitor actual expenditures throughout the fiscal year and recommend a budget adjustment if necessary to cover the remaining General Fund subsidy need.
Prepared by: Meline Carranza, Debt and Treasury Manager Approved by: Sergio Aguilar, Deputy Finance Director
Certified as to
availability of funds: Julie Nemes, Interim Finance Director Approved by: Edward Enriquez, Assistant City Manager/Chief Financial Officer/City Treasurer
Approved as to form: Rebecca McKee-Reimbold, Interim City Attorney Attachments:
Resolution
Preliminary 2026-2027 Street Light Assessment District No. 1 Engineer’s Report Preliminary 2026-2027 Street Light Assessment District No. 1 Assessment Roll Preliminary 2026-2027 Street Light Assessment District No. 1 Engineer’s Diagrams Street Lighting Assessment District Round 2 ● Page 2